Encore Multi-Family to Begin New Tulsa Development
- May 09, 2011
Oklahoma City–Encore Multi-Family L.L.C. has completed financing for the company’s next development project through HUD’s 221(d)(4) program. The property, Encore on Memorial, will be a new garden-style apartment property in the Tulsa suburb of Bixby, Okla. Construction on the 248-unit community is now underway, and is slated for completion by the end of 2011. It will be the company’s first multifamily development in the Tulsa area.
Like most apartment markets, Tulsa has seen rising occupancies and rents, though recent increases haven’t been huge. According to CB Richard Ellis, the occupancy rate in Tulsa’s apartment market rose to 91 percent by the end of 2010, compared with 90.5 percent a year earlier. Newer properties (built since 1999) enjoyed an occupancy of 92 percent at year-end 2010. Apartment rents increased an average of 1.7 percent in Tulsa during 2010.
Encore Multi-Family has been working with the HUD 221(d)(4) program as part of its development strategy since 2008 and has 1,196 apartment units in multiple phases of the HUD invitation, commitment and approval processes. The company has completed 638 units under the program, which guarantees mortgages for qualifying multifamily projects.
“In my opinion, financing of new construction through HUD programs will be more difficult to obtain due to new HUD guidelines that became effective September 2010, and not due to government budget constraints,” Brad Miller, president of Encore Multi-Family, tells MHN. “These new guidelines provide for lower leverage, therefore higher equity requirements, which will be a challenge for many developers.”